Why is Bitcoin falling?

The above question is probably asked by every crypto-investor. We will try to answer them.

Landscape after the bubble

Yes, the current declines are still the result of strong increases from 2017. Remember that last year bitcoin not only pierced the previous ATH ($ 1,200), but established a new and high level (over $ 20,000). This scheme has been repeated in the history of the oldest cryptocurrency for the fourth time. Now, overvalued – as you can see in the opinion of a large part of the market – the course is looking for balance and real BTC value. We observed the same phenomenon in 2014 after the bubble from 2013.

Bitcoin – when to buy?

Willy Woo, an analyst specializing in the cryptocurrency market, had already forecasted another wave of inheritance that could bring the bitcoin rate up to USD 5,000. What’s next? In the analyst’s opinion, the real is the height that investors observed in gold in 2008 during the Wall Street crash. Will this happen? Remember that we DO NOT PROVIDE YOUR INVESTMENT ADVICE. This is the opinion of one of the well-known analysts. However, it can be different …

Bitcoin will fall?

Is there a threat, however, that this is the end of BTC? The company Renaissance Macro Research believes that further declines can cause “irreversible damage” and “permanently weaken” the main cryptocurrency. So is the end of BTC real and close?

Note that the foundations of the market are quite strong. The number of bitomats and people who are interested in the topic of cryptocurrencies is growing. Also private companies and governments want to implement Blockchain technology on which BTC is based. The total collapse of the king of digital currencies may therefore seem unlikely. Jeff daGraaf, head of the Renaissance technical department, however, currently recommends that investors only take short positions.

Despite the decline in the exchange rate, BTC’s share in the entire market increased. It is already over 50%, which is the best result since December 19, 2017. So the rule is that altcoins are strongly connected with bitcoin. When it grows, they can grow even harder than the main currency, now they fall even more when they fall.

Bubble diagram

As we mentioned, we are most likely close to the end of the fourth BTC bubble. There is a chance that the pattern we have been observing for years will be repeated and the digital currencies will return to investors’ favors for some time, including further spectacular increases. How will it be? Are we approaching (we are?) At the best time to buy BTC and altcoins? We’ll find out after the fact.

At the end, we remind you of the classic bubble diagram. Where are we in your opinion?

photo 1: Pixabay.com

photo: Goldenmark

 

Podziel się wpisem

Leave a Reply

Your email address will not be published.